Study: Most location-based ad spending is wasted on bad targeting

Analysis completed by Location Sciences found that up to $65K of every $100K spent on location advertising fell outside of the targeted area or is based on signals of insufficient quality to deliver targeting requirements. According to the report, 29% percent of location-based media spending went to delivering ad impressions outside of the geotargeted area, while 36% was wasted because of a lack of quality location signals.

Reaching consumers with location-based ads is considered one of the most powerful promotional strategies, underpinning the increased spending on mobile, out-of-home (OOH) and experiential marketing. The ability to connect with on-the-go customers when they're ready to shop, or to direct them to nearby stores, restaurants and entertainment venues is a key advantage for mobile platforms. However, those capabilities are undermined when location-based ads are misdirected because of poor-quality data or signals. Read more here in this short article in Mobile Marketer:  https://www.mobilemarketer.com/news/study-most-location-based-ad-spending-is-wasted-on-bad-targeting/561908/

US Leads in Mobile Web Adoption

The mobile Web has hit "critical mass" in the U.S., where it is used by 40 million subscribers, who make up at least 15% of the country's mobile users, according to a new study by Nielsen Mobile. The report, "Critical Mass: The Worldwide State of the Mobile Web," identifies the U.K. as having 12% penetration, and Italy as having 11%. Link: BBC News – July 11, 2008 – Mobile Web reaches Critical Mass

Mobille means Fewer more qualified Ads

Improvements to the mobile Web will continue to cause more people to conduct searches on their cell phones however a new challenge to Web advertising giants like Google, Yahoo and others just may well be the mobile phone's screen size. Traditional thinking might lead you to assume what Ben Kunz did in his article in BusinessWeek - small screen equals - less inventory to sell. It's true that a standard computer screen the Google's Ad Sense can fit about 10 ads, but on a cell phone you get only one or two paid ads.

Says Kunz: "Imagine the horror that would befall your business if a large slice of what you sell suddenly disappeared. A similar fate could befall companies that depend on online advertising, as small screens become the gateway to the Internet."That said, no one believes that mobile phones will replace laptops overnight, but if the adoption of Web usage on Apple's iPhone is any indication, Google and its competitors better get
prepared.

Isn't Google already working on this? Earlier in the first quarter, when those infamous numbers from comScore were released (not that those were necessarily wrong, by the way), Google came out saying that it was tweaking its algorithm to promote ads that were likely to convert while eliminating those that were not. The end result was fewer ads, but more qualified--and thus more lucrative--leads generated from ads that were clicked on. Perhaps Google decided to tweak its algorithm with a view to the mobile shift in mind? After all, if the future means less space for ads, wouldn't Google be wise to make sure that fewer ads cost more and convert better? Link: BusinessWeek - Apr 28, 2008 - The Real Threat to Google

58 million US Mobile Subscribers have seen Ads

Twenty-three percent (One out of four or 58 million) of all US mobile subscribers say they've been exposed to advertising on their phones in the past 30 days, according to a new report from The Nielsen Company. Half of all data users who recall seeing mobile advertising in the previous month say they responded to a mobile ad in some way and are open to receiving ads if it reduces their bill. Link: NYTimes.com, Mar. 4 2008 - Nielsen Says Mobile Ads Growing, Consumers Respond

Designing for Mobility

Some 40% of web site operators have launched mobile sites and another 22% plan to do so in the next year, according to a new JupiterResearch study (appropriately named - "Designing for Mobility"). This is helping to fuel the growing base of mobile phone users in the US that browse the Internet from their cell phones. Current stats reflect that 25% of cell phone owners go online, with 16 percent doing so frequently. As adoption and use grows, the importance of Web sites suitable for small screens will grow in importance for media companies. Link: OnlineMedia Daily Jan 17, 2008 - Mobile Web Sites' Growth Spurt To Continue

Yesterday Banking, Today Pizza

Applications abound in the Mobile sector and obviously that bodes well for the continued growth in mobile advertising. Yesterday AT&T announced the launch of a comprehensive, easy-to-use mobile banking platform that will enable consumers to view account balances and history, transfer funds and pay bills from their AT&T mobile handsets. Through an innovative relationship, AT&T, Wachovia Corp., SunTrust Banks Inc. and mobile banking and payment enabler CheckFree Corp. are providing a mobile banking solution that is accessible to millions of Wachovia and SunTrust customers. Appearently they agree with the forecasts from TowerGroup which estimates the number of US customers using mobile banking services will rise from 1.1 million in 2007 to more than 40 million by 2012.

Not to be left behind in the dining category is Papa John’s Pizza, which is offering its mobile savvy customers a new alternative: ordering via text message. It’s an innovative step that might help boost the company’s sales, and also will allow for more direct-to-consumer mobile marketing, including coupons and menu updates sent to users’ phones. Links: WSJ.com Nov , click Papa John's Pizza gets Finger Friendler, IntoMobile.com - AT&T launches nationwide mobile banking